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Improved estimates of capital formation in the National Health Expenditure Accounts.

Sensenig AL, Donahoe GF - Health Care Financ Rev (2006)

Bottom Line: The largest revision was the incorporation of a more comprehensive measure of investment in medical sector capital.The revision raised total health expenditures' share of gross domestic product (GDP) from 15.4 to 15.8 percent in 2003.The improved measure encompasses investment in moveable equipment and software, as well as expenditures for the construction of structures used by the medical sector.

View Article: PubMed Central - PubMed

Affiliation: Centers for Medicare & Medicaid Services, Baltimore, MD 21244-1850, USA. Arthur.Sensenig@cms.hhs.gov

ABSTRACT
The National Health Expenditure Accounts (NHEA) were revised with the release of the 2004 estimates. The largest revision was the incorporation of a more comprehensive measure of investment in medical sector capital. The revision raised total health expenditures' share of gross domestic product (GDP) from 15.4 to 15.8 percent in 2003. The improved measure encompasses investment in moveable equipment and software, as well as expenditures for the construction of structures used by the medical sector.

Show MeSH
Investment in Medical Sector Structures, Equipment and Software as a Share of Total National Health Expenditures (NHE): 1960-2004
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f3-hcfr-28-1-009: Investment in Medical Sector Structures, Equipment and Software as a Share of Total National Health Expenditures (NHE): 1960-2004

Mentions: The relationship between total health care expenditures and investment in structures, equipment, and software used by the medical sector changes considerably over the 44 years in the time series. In 1960 total investment in structures and capital equipment used by the medical sector represented 6.9 percent of total health care spending. This share increased to a high 8.1 percent in 1971, then declined slowly so that by 2004, medical sector investment in capital accounted for 4.3 percent of NHE (Figure 3). The asset mix in the revised estimates changes considerably over time. In 1960, investment in equipment and software was roughly one-fifth of investment in structures (Figure 4). By 1980, the investment in equipment and software was about three-fifths the investment in structures. By 1995, investment in equipment slightly exceeded investment in structures, and by 2004 equipment investment was more than 20 percent greater than the investment in structures. This change in the asset mix has implications for studies of multifactor productivity, the impact of technological change, and the relationship of investment to total health spending.


Improved estimates of capital formation in the National Health Expenditure Accounts.

Sensenig AL, Donahoe GF - Health Care Financ Rev (2006)

Investment in Medical Sector Structures, Equipment and Software as a Share of Total National Health Expenditures (NHE): 1960-2004
© Copyright Policy
Related In: Results  -  Collection

Show All Figures
getmorefigures.php?uid=PMC4194967&req=5

f3-hcfr-28-1-009: Investment in Medical Sector Structures, Equipment and Software as a Share of Total National Health Expenditures (NHE): 1960-2004
Mentions: The relationship between total health care expenditures and investment in structures, equipment, and software used by the medical sector changes considerably over the 44 years in the time series. In 1960 total investment in structures and capital equipment used by the medical sector represented 6.9 percent of total health care spending. This share increased to a high 8.1 percent in 1971, then declined slowly so that by 2004, medical sector investment in capital accounted for 4.3 percent of NHE (Figure 3). The asset mix in the revised estimates changes considerably over time. In 1960, investment in equipment and software was roughly one-fifth of investment in structures (Figure 4). By 1980, the investment in equipment and software was about three-fifths the investment in structures. By 1995, investment in equipment slightly exceeded investment in structures, and by 2004 equipment investment was more than 20 percent greater than the investment in structures. This change in the asset mix has implications for studies of multifactor productivity, the impact of technological change, and the relationship of investment to total health spending.

Bottom Line: The largest revision was the incorporation of a more comprehensive measure of investment in medical sector capital.The revision raised total health expenditures' share of gross domestic product (GDP) from 15.4 to 15.8 percent in 2003.The improved measure encompasses investment in moveable equipment and software, as well as expenditures for the construction of structures used by the medical sector.

View Article: PubMed Central - PubMed

Affiliation: Centers for Medicare & Medicaid Services, Baltimore, MD 21244-1850, USA. Arthur.Sensenig@cms.hhs.gov

ABSTRACT
The National Health Expenditure Accounts (NHEA) were revised with the release of the 2004 estimates. The largest revision was the incorporation of a more comprehensive measure of investment in medical sector capital. The revision raised total health expenditures' share of gross domestic product (GDP) from 15.4 to 15.8 percent in 2003. The improved measure encompasses investment in moveable equipment and software, as well as expenditures for the construction of structures used by the medical sector.

Show MeSH